Exporting to the USA

The USA can be seen as an easy country in which to do business and continues to be the UK’s number one export destination. UK companies approach the market directly, perhaps appointing sales agents operating largely on commission. American buyers like the reassurance of being able to contact their suppliers locally i.e. within the USA. This can result in the UK exporter realising that they need to set up a virtual or representative office with a local address and phone number.

If you incorporate a company in the US, the US company can act as an agent or distributor, so the UK parent should decide on the best business model. As a distributor the UK parent will sell stock to the US corporation whereas under an agent arrangement the UK parent will invoice the US customers and pay a commission to the US corporation. It is a very easy process to register a company in the US but thereafter a UK company should obtain professional advice from specialists. It is important to obtain both legal and financial advice as the lawyer and accountant will give you their view on what needs to be done.

For example, each state has its own legal and tax system. A US company has to file a tax return in each state if it has an office, stock, company registration, or even visits by salesman to that state!

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